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The owner of Hamilton hotel would like a cost formula that relates the hotel maintenance cost for a month to a number of occupancy days
The owner of Hamilton hotel would like a cost formula that relates the hotel maintenance cost for a month to a number of occupancy days for that month. Using high low method to establish the fixed and variable components of maintenance costs, find out Variable cost, Fixed cost and express as Y= F + Vx (10 marks)
Month | Occupancy days | Maintenance cost |
January | 5600 | $7900 |
February | 7100 | $8500 |
March | 5000 | $7400 |
April | 6500 | $8200 |
May | 7300 | $9100 |
June | 8000 | $9800 |
July | 6200 | $7800 |
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